Private Equity 3 Days

Last updated: July 29, 2026, 2:30 AM ET

Sector Focus Shifts Amid AI Disruption and Infrastructure Deals

Private equity firms are increasingly focusing on business, financial, and healthcare services where artificial intelligence can significantly boost productivity and customer outcomes, according to Joseph Knoll of Tower Brook. This strategic shift is occurring alongside robust activity in infrastructure, with Stonepeak and CMA CGM completing the formation of United Ports. Stonepeak invested $2.4 billion for a 25% stake in the joint venture, which will remain under CMA CGM's operational control completed formation. HIG has acquired Avove, an infrastructure services and engineering firm specializing in regulated water and power markets, while SVP is acquiring a minority stake in the power plant South Field Energy. In a significant infrastructure deal, ECP and KKR have agreed to acquire DCC Energy for $7.7 billion, taking the multi-energy sales and distribution business private.

Deeptech, AI, and Cybersecurity Attract Early-Stage and Growth Capital

Early-stage venture capital is channeling significant funds into deeptech, with 13 startups securing backing in the first half of 2026. The intersection of AI and cybersecurity is particularly hot, with startups in this space raising $855 million across over 150 seed-stage rounds this year. AI startups are also drawing substantial investment, with Dwelly raising $170 million backed by EQT and General Catalyst. Thorne Science, developing an AI-powered toilet camera for gut health tracking, has secured $10 million in a Series A round led by Will Ventures. Carlyle has backed cybersecurity firm Secturion, marking its first investment from a new aerospace, defense, and industrials platform. Visionaries is reportedly cutting its investment team to two lead partners for its next fund, while ETH Zurich spinout Zuri Q has raised $25.5 million in seed funding. Multiverse Computing is targeting a €500 million round at unicorn valuation.

M&A Activity Spans Healthcare, Industrials, and Software

The healthcare sector remains a key area for M&A, with Arlington Capital Partners exiting its medical equipment company Riverpoint to Novanta in a $1.45 billion deal. Arlington later confirmed the $1.45 billion sale of Riverpoint Medical to Novanta, noting a stable transaction environment in healthcare. Behrman Capital-backed Micross has acquired manufacturer AEMtec, and Riverside-backed Decera Clinical is investing in healthcare knowledge platform Onviv. BC Partners has agreed to acquire a co-control stake in Info RLife, a Swiss CDMO specializing in IV infusion bags for hospitals.

In industrial and manufacturing sectors, AIP has completed the buyout of material handling firm Intelligrated from Honeywell Technologies. Wynnchurch is taking industrial company Luxfer private for $17.37 per share, and Trans Digm is set to acquire IGP-backed Prince & Izant for over $1 billion. FEP has acquired Australian Planet Fitness franchisee Bravo Fit, with Planet Fitness exiting its minority ownership acquires franchisee. Mutares has agreed to acquire the Free2move car-sharing business from Stellantis, which operates across 14 cities in Europe and the US.

Software and technology acquisitions are also notable. Bridgepoint is set to acquire a majority stake in Lansweeper, a technology asset intelligence platform, and has also agreed to acquire Lansweeper outright, whose data platform uses AI to map IT networks. Ridgeview has made a £545 million take-private offer for automotive software company Pinewood. Mid Europa is acquiring a construction software platform in the Czech Republic, uniting ÚRS, First Information Systems, and Callida. THL Partners is selling firmware provider AMI to Lattice Semiconductor, retaining an equity interest in Lattice.

LP Strategies and Fund Dynamics Evolve

Limited partners are recalibrating their private equity exposure, with family office Green Bear actively seeking to revamp its portfolio by tapping into the secondaries market to reduce illiquid assets. Green Bear is also favoring separately managed accounts, citing cost-efficiency benefits amid lower private equity returns. One of Europe’s most active LPs is specifically seeking out VCs with strong industrial know-how. High-conviction deals gained favor from secondaries investors in the first half of the year, with AI disruption impacting both LP-led and GP-led markets. UK pension providers are reportedly in talks for a £1 billion Scale-Up Fund.

Firm Moves and Executive Changes

AE Industrial Partners has appointed Leonard Dollaga as operating partner to help identify investment opportunities in national security sectors, particularly maritime. Wealth management continues to be an attractive sector for private equity, with Carlyle making a debut investment from its new aerospace platform. Asia’s Affinity has seen another senior executive depart, marking at least nine senior departures since the start of 2023, including four partners in the last 12 months. 9fin has completed its first employee share sale following a $170 million raise.

Valuations, Exits, and Market Commentary

The European unicorn exit landscape for 2026 so far highlights the dynamics of the region's venture capital ecosystem. Bessemer and Atomico are reportedly in talks to lead The Exploration Company's funding round at a valuation of $2 billion. Pliant has achieved $100 million in annual recurring revenue following its expansion into the US. Cinven and La Caisse have agreed to jointly acquire MGA Optio, which underwrites specialty risk across 15 countries. Tower Brook’s Joseph Knoll commented that Europe offers lower multiples but a more challenging regulatory environment, while ECP and KKR have made offers for DCC Energy. Knoll also noted that the strongest opportunities lie in services, where AI enhances productivity and outcomes, alongside the consumer vertical. The cost of "democratisation" for GPs seeking new LP capital is a point of consideration, with Blackstone having raised $14 billion for its latest secondaries fund. Nothing is reportedly cutting around 100 jobs as part of a cost-cutting initiative.